Pay Rise Calculator
See the real take-home impact of a pay rise after income tax, National Insurance and student loan changes. A £5,000 raise rarely means £5,000 more in your pocket - find out exactly what you will actually receive.
Last updated: April 2026
Before vs after
| Before | After | |
|---|---|---|
| Gross salary | - | - |
| Income tax | - | - |
| National Insurance | - | - |
| Student loan | - | - |
| Pension | - | - |
| Take-home (annual) | - | - |
Why your pay rise is smaller than it looks
Most people are surprised by how little of a pay rise they actually take home. Every pound of extra salary above your current position is taxed at your marginal rate - meaning the rate that applies to the top slice of your income. For someone earning between £12,570 and £50,270 in England, that marginal rate is 20% income tax plus 8% National Insurance - 28% gone immediately. Add a student loan repayment and a pension contribution and the effective deduction can easily reach 40–50% of the gross rise.
The marginal rate trap
If your pay rise pushes your salary above a threshold, part of it will be taxed at a higher rate. In England, the higher rate of 40% income tax applies above £50,270. National Insurance drops to 2% above £50,270, which partially offsets this. The most punishing threshold is £100,000, where you begin to lose your Personal Allowance at £1 for every £2 earned above that level, creating an effective marginal rate of 60% on income between £100,000 and £125,140.
Scotland has different bands
Scottish taxpayers pay Scottish Income Tax on employment income, which has six bands compared to three in the rest of the UK. The Intermediate rate of 21% applies from £14,877 to £31,092, the Higher rate of 42% applies from £31,093 to £62,430, and the Advanced rate of 45% applies from £62,431 to £125,140. National Insurance thresholds remain UK-wide. Scottish taxpayers at the same salary as an English counterpart often take home slightly less, particularly in the £31,000–£50,000 range.
Pension contributions and salary sacrifice
If your pension contributions are made via salary sacrifice, they reduce your gross pay before tax is calculated - meaning you save income tax and National Insurance on the amount sacrificed. This calculator uses post-tax pension contributions, which is the standard auto-enrolment approach. If your employer offers salary sacrifice, the true net cost of your pension contribution is lower than shown here, and the take-home figure would be slightly higher.